The coronavirus pandemic has caused interest rates to reach record lows, which means it’s cheaper than ever to borrow money for a home loan. Still, with a recession due to a pandemic on the horizon, you may be wondering, is now a good time to get a mortgage? The answer really depends on your financial situation.
If your finances aren’t in good shape or you think there’s a chance you could be laid off, it may be best to put off your home purchase. However, if you have a stable job and strong finances, you could save thousands by getting a mortgage now and taking advantage of low interest rates.
Understanding mortgage macro trends
In response to the coronavirus pandemic, the Federal Reserve slashed interest rates to 0% in March. This caused mortgage rates to hit all-time lows in the months following. Although the Federal Reserve doesn’t set mortgage rates directly, its decisions affect what kind of rates are available to borrowers. When the federal funds rate is… Read More